Automated Trading – EAs

According to statistics of the Bank for International Settlements, trading or automated trading systematically represented 37% of the total activity of the currency exchange market. There are a huge variety of automated forex trading software also known as black box, or Expert Advisor algorithmic trading. These traders are robots designed to operate without the presence of the trader with a computer program that passes the orders of buying and selling in a trading strategy pre-configure the system by the user. With automated trading software, you can turn on your computer, activate the program and software trade for you.

Who can use an EA?

The automated trading is open to all types of investors, from beginners to forex trader forex trader experienced. Some experts advisors are paid and others free, with some programming knowledge, a trader can develop itself an EA, it is also possible to hire a professional programmer. The online reviews highlight the advantages and shortcomings of commercial EA. Some programs offer a free trial and others will be refunded if the result does not tell the reality. However, these programs are far from infallible and the user must be aware that automated trading software can lose money.
The benefits of automated trading

Algorithmic trading has many advantages, it eliminates the negative influence of the emotions of the trader. The expert advisor trade rigorously based on a logical set in advance. The purchase orders and sales in the forex run without emotions and consistently using the parameters pre-established trading. In addition, the automated forex trading program can handle multiple accounts simultaneously 24/24. With a backtest on historical data, the trader can evaluate the performance of a strategy on a demo account and find weaknesses to optimize the results before running the program on a real trading account.

Choose a program of automatic forex trading

Sometimes the forums forex trading, you can read comments from novice investors who claim to have made substantial profits by using an expert advisor for metatrader 4. Each comment must be regarded with some skepticism. Among the many automated forex trading programs on the market, there are as many scams as good programs. The ads tout the merits of expert advisor, you should know that a publisher will always provide an honest history of the results certified by an independent site myfxbook.com as to demonstrate the effectiveness of the programs it sells. However, past performance is no guarantee of future results! The drawdown is also an important element, the higher it is more the strategy is risky.
Virtual Servers

A VPS (Virtual Private Server Hosting) is essential in automated trading. It allows the expert advisor to run continuously day and night. The dealer does not need to leave turn his computer, plus it is safe from a possible power outage or internet connection. A VPS functions as a remote computer, the trader can install the trading platform metatrader 4 expert advisor and through an online interface. Sometimes forex brokers offer VPS service to their customers for free if they file a certain amount of money on their behalf or if they realize a monthly transaction volume set in advance. If the CFD and forex broker does not offer VPS, there are many hosting companies that offer this service for 15 to 30 euros per month, some even specialize in hosting trading platform.
The choice of forex broker

There are several trading platforms for automated trading, but the most popular is MetaTrader 4. This trading software is widely available from major brokers in the market for currency exchange. Then, the choice of forex broker should be based on the expert advisor. If the trader uses a scalping EA, check that the broker accepts the scalping and if it spreads there that are essential for scalping. The minimum lot size can also be important because some EA open a significant number of positions simultaneously. There is also the level of margin call to be adapted to the maximum drawdown of the strategy, the number of positions that can be opened simultaneously. The trader must know the operation of the robot to choose a forex broker that provides suitable conditions for forex trading.